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Thor Industries (THO) Earnings Miss, Revenues Beat in Q2
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Thor Industries Inc. (THO - Free Report) reported second-quarter fiscal 2017 (ended Jan 31, 2017) earnings of $1.23 per share that missed the Zacks Consensus Estimate of $1.26. Net income from continuing operations increased 45.6% to $64.8 million from $45.2 million in the prior-year quarter.
Revenues rose 62.9% year over year to a second quarter record of $1.59 billion, surpassing the Zacks Consensus Estimate of $1.51 billion. The year-over-year improvement was driven by higher organic growth, along with benefits from the Jayco’s acquisition.
Gross profit improved 42.3% to $211.7 million from $148.8 million in second-quarter fiscal 2016. Gross profit margin was 13.3% compared with 15.3% in the year-ago quarter, due to acquisition-related dilution.
Sales of Towable RVs went up 55% year over year to $1.08 billion, driven by benefits from Jayco’s acquisition and rising sales of lower-priced travel trailers. Pre-tax income increased 47% to $78 million from $53.1 million in the prior-year quarter, backed by higher sales and slight improvement in selling general and administrative expense margin. This was partly offset by increased amortization expenses and lower gross margins related to Jayco.
Revenues from Motorized RVs surged 95.6% to $475 million from $242.9 million in the year-ago quarter. The upside was driven by strong sales of moderately priced Gas Class A and Class C motorhomes along with the benefits from Jayco’s acquisition. Pre-tax income from the segment increased 38.8% to $28.5 million from $20.5 million a year ago.
Financial Position
Thor Industries had cash and cash equivalents of $134.7 million as of Jan 31, 2017, down from $185.4 million as of Jan 31, 2016. Long-term debt was $325 million as of Jan 31, 2017, compared with no long-term debt recorded in the prior-year quarter.
Thor Industries incurred capital expenditures of $25 million in second-quarter fiscal 2017, lowering the revolving credit facility by $15 million. The company will be focusing on production capacity expansion in the second half of 2017, with capital expenditures projected at $80 million for the remaining year. Total capital expenditure in fiscal 2017 is projected at $130 million.
Thor Industries, Inc. Price, Consensus and EPS Surprise
Allison Transmission has an expected long-term growth rate of 11%.
General Motors has an expected long-term growth rate of 9.4%.
Fiat has an expected long-term growth rate of 21.70%.
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Thor Industries (THO) Earnings Miss, Revenues Beat in Q2
Thor Industries Inc. (THO - Free Report) reported second-quarter fiscal 2017 (ended Jan 31, 2017) earnings of $1.23 per share that missed the Zacks Consensus Estimate of $1.26. Net income from continuing operations increased 45.6% to $64.8 million from $45.2 million in the prior-year quarter.
Revenues rose 62.9% year over year to a second quarter record of $1.59 billion, surpassing the Zacks Consensus Estimate of $1.51 billion. The year-over-year improvement was driven by higher organic growth, along with benefits from the Jayco’s acquisition.
Gross profit improved 42.3% to $211.7 million from $148.8 million in second-quarter fiscal 2016. Gross profit margin was 13.3% compared with 15.3% in the year-ago quarter, due to acquisition-related dilution.
Segment Results
Sales of Towable RVs went up 55% year over year to $1.08 billion, driven by benefits from Jayco’s acquisition and rising sales of lower-priced travel trailers. Pre-tax income increased 47% to $78 million from $53.1 million in the prior-year quarter, backed by higher sales and slight improvement in selling general and administrative expense margin. This was partly offset by increased amortization expenses and lower gross margins related to Jayco.
Revenues from Motorized RVs surged 95.6% to $475 million from $242.9 million in the year-ago quarter. The upside was driven by strong sales of moderately priced Gas Class A and Class C motorhomes along with the benefits from Jayco’s acquisition. Pre-tax income from the segment increased 38.8% to $28.5 million from $20.5 million a year ago.
Financial Position
Thor Industries had cash and cash equivalents of $134.7 million as of Jan 31, 2017, down from $185.4 million as of Jan 31, 2016. Long-term debt was $325 million as of Jan 31, 2017, compared with no long-term debt recorded in the prior-year quarter.
Thor Industries incurred capital expenditures of $25 million in second-quarter fiscal 2017, lowering the revolving credit facility by $15 million. The company will be focusing on production capacity expansion in the second half of 2017, with capital expenditures projected at $80 million for the remaining year. Total capital expenditure in fiscal 2017 is projected at $130 million.
Thor Industries, Inc. Price, Consensus and EPS Surprise
Thor Industries, Inc. Price, Consensus and EPS Surprise | Thor Industries, Inc. Quote
Zacks Rank & Other Stocks to Consider
Thor Industries currently carries a Zacks Rank #2 (Buy).
Other favorably placed companies in the auto space include Allison Transmission Holdings, Inc. (ALSN - Free Report) , General Motors Company (GM - Free Report) and Fiat Chrysler Automobiles N.V. . All the three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Allison Transmission has an expected long-term growth rate of 11%.
General Motors has an expected long-term growth rate of 9.4%.
Fiat has an expected long-term growth rate of 21.70%.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>